Retail energy regulation and multi-faceted market reform have put competition, transparency and decarbonisation at the top of the agenda.
For policy-makers, understanding how national legislation affects the market and avoiding overtly conflicting demands to ensure reform has the desired outcome remains a constant challenge. For market participants the relentless challenge is around where to prioritise - facilitating customer switching, transitioning the financial costs of smart meters to bills or revising customer bills to make them easier to understand.
European regulation adds a further layer of complexity and creates a framework that can be difficult to navigate. In particular, the shift from Renewal Obligation to Contracts for Difference is raising questions about managing exposure, energy forecasting and the role of vertically integrated utilities.
Baringa’s energy retail consultants work closely with legislators, modelling outcomes of proposed policies, analysing impacts on market participants, and assessing financial costs. Our in-depth knowledge of the markets, the end-to-end energy value chain, and the utilities’ operating models supports decision-making at the highest level. In a virtuous loop of information sharing and feedback, we work with utilities to understand the impact of market reform on their business, and establish how best to adjust to changing requirements.